SaaS (Software as a Service) businesses are growing in popularity because numbers are growing tremendously high. According to the research report of Verified Market Research, the total valuation of the global SaaS business market is around 151.31 billion US dollars, which is likely to reach the mark of 896.20 billion US dollars by 2023 (Source). This market is segmented into different industries. One of the emerging markets in the SaaS models is the call center industry and one of the overlooked aspects in this segment is call center with billing.
Whenever you think about running a SaaS business using one of the best call center dialer solutions, you are likely to think about everything as a vital component except for the call center billing solution. A majority of businesses focus on multi tenancy, omnichannel, third party API integration, and several other aspects followed by marketing strategies, customer retention plans, and more. However, billing is the most ignored part even if it is the actual window to achieve the ultimate goal of getting paid and earning real money to keep growing, running business successfully, and making some profit.
In this blog post, we will explore more details about the SaaS business model in the call center industry and the role of billing in this industry.
- What is a SaaS model in the call center industry?
- What are the billing models in the SaaS call center business?
- What is the role of call center billing in this industry?
- How to get seamless billing in the call center SaaS model?
- Concluding notes
So, without any further ado, let’s get into the detail of each of these points:
1. What is a SaaS model in the call center industry?
The call center industry is growing with an expected growth rate of 10.80% CAGR and it is already a billion dollar industry (Source). This number represents businesses that run as call centers and handle offshore projects. Other than these call centers, there are emerging startup call centers, in-house departments, etc. that handle inbound, outbound, or blended call centers.
To manage customer care, cold calling, sales, and several other similar campaigns, a business needs a reliable contact center software solution. Each of these businesses is less likely to be able to afford a feature rich solution for call centers. Thus, they opt for the SaaS model.
A contact center solution provider can run the SaaS model using one of the best multi tenant call center solutions. A multi tenant solution enables the provider to create instances, which are also known as tenants, for each of its customers. Each tenant can act as an independent call center solution. The provider can control these tenants and give role based or account based access to the software users, which can be a call center or a company with an in-house setup of a customer care center.
The provider will charge a customer to use the software as a service, which is why this model is known as the software as a service model. The provider will handle all technical aspects related to the software and get paid for the software as per the defined billing cycle. On the other hand, the tenant will pay for the software usage as per the defined cost.
2. What are the billing models in the SaaS call center business?
In the SaaS business, billing is more complicated than in a simple call center business because it includes different factors. In this industry, billing can never be straightforward because there are dynamic aspects and variable values assigned to the billing models. Additionally, the numbers to be included in the billing process are often huge. All this makes call center billing quite complicated and difficult to be handled with manual resources.
To make a move to understand the complexities related to call center billing, let’s first understand two majorly used billing models in the SaaS business in this industry.
Subscription based billing
This is a common and easy to implement billing model in this industry. The call center software provider will have different subscription plans, which are also known as rate cards. Each of these plans will have different feature access to the software along with some predefined functionalities and benefits. The cost will be fixed for each of the subscription models.
Usage based billing
As the name suggests, this model is dynamic in nature and charges customers based on the usage of the system and other resources made available by the provider. The usage can be of the software, in general. Other than that, some software as a service providers also offer additional offerings, which are chargeable such as paid support, third party integrations, omnichannel communication, etc.
Hybrid billing
The hybrid billing in the call center with billing is a blend of both subscription and usage based billing models. According to this model, the customers have to pay a certain fee as part of the subscription fee and then they need to pay variable costs based on the usage of the software. In the call center industry, this model is heavily followed by the contact center solution provider. The reason is that billing is dynamic in this industry. From the number of agent seats to supported concurrent calls per minute, total call minutes, etc. can vary depending on the season, peak time, etc.
Along with these three models, prepaid billing and postpaid billing are also part of this industry. A majority of call center billing solutions support all three of these billing models along with prepaid and postpaid billing and payment.
3. What is the role of call center billing in this industry?
Even if billing is one of the most complicated and vital business aspects, it is often neglected by SaaS business owners. They put more focus on call center dialer solutions, marketing, customer retention, and other aspects. Of course, these aspects are vital, but billing is even more crucial for a business for multiple reasons.
In this industry, your billing system has to be accurate, efficient, and timely. There are several advantages of these businesses, which make the role of billing essential in the call center industry.
Steady cash flow cycle
The sole purpose of running any business is earning revenue and increasing returns over investment (ROI). This is possible only if you have a clear billing model and system in place. Moreover, you must send bills on time to get paid on time and keep pushing the cash flow cycle to momentum.
As billing and invoicing are quite complicated jobs in the call center industry, along with the best contact center software, it is necessary to get the best call center billing software, too. It will automatically track the system usage, subscription, etc. of the customer and make it possible to keep running a successful business that is making money.
The lack of this system in place will lead to delayed payments. However, expenses will be steady. This directly impacts the profit model of the business, which often becomes the major reason behind the failure of the call center business with the SaaS model.
Transparency in billing
Billing in the call center industry is a bit complicated not only to calculate but also to understand. This makes it more crucial and complicated. Sending the final amount to be paid in the invoice often creates doubts and concerns in the mind of customers. This would also lead to a chain of email or phone based support requests to get clarity on bills sent to clients. This delays payments and directly affects the cash flow of the business.
If you use one of the best call center billing solutions, then these concerns can be left behind by giving a detailed invoice. The software will be able to map the subscription model along with adding details of the system usage. The invoice can include, the used number of agent seats, the used number of call minutes, charges per call based on the least cost routing, and several other calculations. The invoice can be as transparent as a call center software provider wants it to be.
This will not only eliminate all the billing related questions from the mind of clients, but it also helps in removing the time required to provide support to resolve concerns related to bills. This puts three vital jobs of invoicing, billing, and payment processing in momentum and makes it easier to run the SaaS business in the call center industry for the provider.
Increased credibility as a provider
Customers always prefer to deal with providers that are transparent and accurate. Moreover, when you operate in the B2B space, things are more formal and professional. Companies like providers that are straightforward and provide the required details and support. This is possible only if you have the right software and team in place. By using the best call center billing software, you can give more detailed invoices and secure payment processing options. Moreover, the system is automated, so you can send bills on time. This will be preferred by your clients and it will definitely increase your credibility and reliability as a provider.
Better brand building
Money is often the cause of distrust and you overpower this challenge by implementing an automated billing system. Increased credibility as a provider will increase the trustworthiness of your brand as well and this will directly benefit your business and revenue generation. You can get better business opportunities and competitive gains.
Making the right business strategies
Clarity in billing will also let you assess more sales and revenue making opportunities. You will be able to know where you are making more money and where you are losing it. These details can be very helpful in defining future business strategies.
4. How to get seamless billing in the call center SaaS model?
It is always recommended to get a call center solution with an integrated billing module. This will reduce your struggle related to call center billing integration, compatibility related challenges, etc. Thus, if you are looking for software, you must get one with an integrated billing system. However, if you do not have access to that kind of solution, you can also get the call center billing solution and integrate it. This system often provides automation and several other features to make call center billing easier for SaaS businesses.
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Concluding notes
In a nutshell, the role of billing in the SaaS business of the call center industry is very critical. In fact, it is one of the definitive success factors of the business, which defines how your business will take a turn in the competitive space. A majority of SaaS business owners in the call center industry put all their focus on getting the right solution for call centers. Along with this software, implementing the right billing system and secure payment model is equally important. It will not only streamline the cash flow, but it will also help in enhancing several other aspects of the business to gain more credibility and enjoy other branding benefits.
We have been helping businesses with one of the most renowned multi tenant call center solutions, which has an integrated billing system. We also provide call center billing integration to the users of iCallify to use its powerful features, so billing can be backed by the automated system. SaaS business owners can keep all their concentration on other aspects of the business.
To help you understand the worth of our software, we provide a free trial as well as a lifetime free edition of the software. You can opt for this edition of the latest version of iCallify software. This will give access to the host of the features available in this software along with a call center with billing. To book your free trial or edition or to ask any questions that you may have about our software, please contact us and our team will connect with you for a personalized discussion.
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